Proposal 15 - Increase Rewards for CVP/ETH Pool on Uniswap

Proposals
#1

The purpose of this proposal is to vote on providing 250,000 CVP rewards per week to users who fund the CVP/ETH Uniswap Pool. The current rewards are 182,000 per week and are scheduled to be cut in half to 91,000 per week on Dec 31st, 2020. Rewards will continue to vest over a 10 week period.

The benefits of increasing the Rewards for the CVP/ETH Pool;

1 - The price of the CVP token is essential to the health of the PowerPool EcoSystem. By increasing rewards for this pool, it will incentive users to hold and purchase additional CVP tokens for the Increased Rewards.

2 - Liquidity is just as important as price…with the Tester Rewards set to begin distributing in April of 2021 over an 18 month period, it is extremely important the project has large amounts of liquidity to absorb the possible selling by these token holders.

This proposal would set the Pool Rewards for the CVP/ETH Uniswap pool at 250,000 CVP tokens per week beginning on Jan 1st, 2021 and expire on Dec 31st, 2021 after which time the Pool Rewards would reset back to the original 91,000 CVP Reward Tokens per week.

1 Like
#2

Dilute current holders by 8.3M (extra) tokens over the next year? Yeah, no thanks. This is not to the benefit of CVP holders, you only want it because you’re an LP.

Why don’t we just focus on increasing the value of CVP instead? Very low hanging fruit is to add indexes that will attract TVL

3 Likes
#3

I appreciate the feedback. So if a proposal isnt passed to change the rewards there will still be 4.7M added to the supply next year. The Pool’s APY will drop to around 280% annually at the current CVP Price…is that enough incentive for people to keep their tokens in the pool…

#4

I think it is) And it can be higher if the price of CVP grows up and it will be not easy to make with 250k new CVP every week (even with vesting)

#5

I am AGAINST:

  1. this proposal alone would add more CVP to the circ supply than the current circ supply is.
    I believe the effect on potential holdings of CVP/liquidity provision will be completely jeopardized by CVP circ supply artificial inflation.
    current APY - 540%, with 1/2 would be 270%. this is still a lot.

  2. Binance Huobi, UNI, BAL - if these listing don’t help, nothing will.

1 Like
#6

Firmly against this proposal…if your goal is to increase the PRICE of CVP, your proposal will have the opposite effect. As mentioned, much better to focus on increasing the value of CVP by making Power Pool’s products (the investible indices) more attractive to ppl

#7

Guys, I would not mind supporting this proposal, however it would have to include extending the vesting periods by three times (i.e. 30 weeks at least) to prevent dumping the price. That would acknowledge the role of the LPs and retain the long term value of the project at the same time.

What do you say?

But to make it clear, as the proposal stands now, I will vote AGAINST!

1 Like
#8

I currently don’t see the point of increasing the rates here just to dilute CVP. I would vote against any changes at the moment. The return APYs all look ok to me. CVP-ETH, then YETI-ETH, then PIPT-ETH rank in that order for APY, which matches yields very well. Why adjust when we don’t have to?

#9

Not proposing the rewards get increased. See latest proposal…just trying to keep them the same. If nothing is done, you will get ZERO rewards for mining the Yeti token and the CVP/Eth rewards will be reduced by 50%.

#10

Hey @Alan, I want to point to inconsistency of the latest proposal explanation. You stated: “ In addition, to address the concerns of flooding the market with reward tokens, I have changed the vesting of these rewards from 10 weeks to 24 week (3 months)”.

Please note that 24 weeks DOES NOT EQUAL to 3 months.

Could you make clear at least here in the forum, whether the vesting period was meant to be 3 months (12 weeks) or 6 months (24 weeks).

#11

Thanks, yeah as soon as it posted I realized the mistake - suppose to read 12 weeks - 3 months…and we had a big discussion about that in the Telegram group…so now we just have to wait until it expires so I can propose it again…

#12

@Alan, when I compared those 2 proposal, I noticed that you have also extended the period of the increased rewards from 3 months to 12 months! Even though it looks very attractive for LP providers (including myself), I am worried that such an action would damage the whole ecosystem and the long term valuation of the CVP token - @powerpoolAdmin pls could you give us your official statement on this issue pls?

As for me I would rather support 3 months extension of increased rewards than 12 months extension and I also believe that this shorter period would have a higher chance of being supported by the community.

#13

The 12 month extension was just for the Yeti Pools…not for the CVP/ETH Pool…that pool’s rewards arent set to expire. I did this because the PIPT Rewards dont expire…so I wanted to at least give the Yeti holders some stability for 2021…hence the 12 month extension.

#14

@Alan, not really…

“At the end of December, the rewards for the CVP/ETH Uniswap Mining Pool are set to get cut in half. From 182K/week down to 91/K per week. This proposal would keep those mining rewards for this pool at current rate of 182k/week for the next 12 months.”

Please make sure that the explanation of the third version of the proposal is precise and clear.

#15

This is how the 3rd proposal will read. If you have any suggestions / modifications you think need to be made, please post them:

The last 2 proposals had some incorrect rewards listed. I have made the corrections.Let’s try this a 3rd and hopefully last time…

The purpose of this proposal is to vote on renewing the current Rewards for the CVP/ETH, YETI/ETH and YETI Mining Pools.

In the first week of January, the Yeti Rewards for both mining pools are set to expire. This proposal would continue on with the same reward rate for the next 12 months.

Current Mining Rewards;
250K/Month for YETI/Eth Balancer Pool
200K/Month for Yeti Pool

At the end of December, the rewards for the CVP/ETH Uniswap Mining Pool are set to get cut in half. From 182K/week down to 91/K per week. This proposal would keep those mining rewards for this pool at current rate of 182k/week for the next 12 months.

All rewards for the above pools would vest over 12 weeks (3 months).

After Dec 31st, 2021 all rewards would end for these pools. A new proposal would need to be passed by this date to continue on Mining Rewards for these pools.

2 Likes
#16

@powerpoolAdmin could you, on behalf of the project team, give us your best expert opinion on the increased rewards extended till 31.12.2021, especially regarding the possible impact on the ecosystem and long term price of CVP?

Please share your mind BEFORE the 3rd proposal is submitted. Thank you in advance.

#17

Would it be possible to lower these proposed rewards in a subsequent proposal? I too am concerned with the long-term impacts of this proposal on inflation, and I’d be hesitant to “lock in” returns for 12 months at this stage.

If you look at Index Coop, they first offered a highly-incentivized LM program but have since retained a lot of TVL by offering ~30% APY. Based on their design and success, it may be unnecessary to offer high APYs for an extended period of time.

Further, I don’t suspect that the marginal increase in TVL is worth the additional APY. If you aren’t interested in staking at 250% APY, would a bump up to 500% APY change your mind? For rewards of 100% APY+, I would suspect that other concerns (e.g. smart contract risk, viability of index) matter much more than raw APY in terms of increasing TVL.

My concern is that the protocol would be in a bad place if CVP inflation greatly outpaces TVL. I think using CVP inflation to bootstrap new indexes (e.g. ASSY) will increase TVL much more than sustaining APYs on existing pools, and I think we can find a more sustainable tradeoff.

#18

I agree with the majority. Even I am currently a cvp-eth LP and I DO NOT want these rewards. Unnecessary. As mentioned it’s just not worth massive dilution. I want this project to succeed, and price is something that is important, this proposal i think will do more harm to that imo. Thanks

#19

So Defly, you dont think any rewards should be given to YETI Holders? If so, then should we be doing away with the rewards given to PIPT holders as well? Also, dont you think its important to give out rewards to the people funding the CVP/ETH Liquidity Pool…if not, many people including myself would pull our liquidity as $900 in daily fees spread out over 4.6M isnt nearly worth it to participate…

#20

I think this proposal is fine in it’s current form as long as we still have the option to decrease rewards in a future proposal if needed. Getting rid of rewards entirely would drastically hurt TVL, but cleary there is some optimal reward value between 0% and 500% APY.

I also think it’s too soon to see CVP/ETH LM rewards cut in half. APY for this pool should be higher than PIPT/YETI given that CVP should be prone to higher volatility, so the yield should reflect this.

I would vote yes for v3 of this proposal assuming we’d still have the option to adjust rewards in the future if needed. Otherwise I would like to see this proposal only lock-in rewards for 3 months at most.